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Unused budget funds to improve people’s lives

Updated: Jul 8,2015 9:26 PM

A State Council executive meeting on July 8 presided over by Premier Li Keqiang listened to reports of the State Council’s supervision of 18 provinces as well as 35 ministries and units, decided to use unused budgetary funds to improve people’s lives, and announced a policy to help poor students.

More positive factors have emerged in the Chinese economy in the past two months, the pace of structural adjustment has accelerated and fiscal and monetary policies have been effective, the meeting said.

Officials at the meeting said development momentum and capability to handle risks have grown, and that they had the confidence to fulfill major targets of this year’s economic and social development.

After listening to reports of the State Council’s supervision of 18 provinces as well as 35 ministries and units, the meeting instructed:

* Redirect more than 250 billion yuan of budgetary allocations retrieved due to inefficient or illegal use in key projects to areas in urgent need of money.

* Local governments should speed up construction of railway, rural highway and major water conservancy projects, and ensure that annual targets are met.

* Special bonds and other market-oriented means to raise capital will be used to support China’s production capacity cooperation with other countries.

* Officials who “apparently did not perform their duties or did not do enough in corrective and remedial measures” have to take responsibility for their actions.

The executive meeting ordered all government bodies to resolve problems found in the central government’s Financial Audit Report for the fiscal year 2014.

* All government bodies should set a deadline for resolving problems identified and deliver a report to the State Council by the end of November.

* Strengthen streamlining and delegate powers by resolving these problems.

* Establish a supervision mechanism to ensure government funds are used effectively and properly.

The meeting also decided that the government will pay the interest on college loans before poor students’ graduation, while the maximum loan term will raised from 14 years to 20 years.

The application process will also be simplified. Graduates working in grass-root units in poor and remote areas can apply for provincial financial departments to repay the loans.